Authority Industries Trade Authority Ratings Explained

Trade authority ratings serve as the structured backbone for how contractors, vendors, and service firms are evaluated and publicly ranked within the Authority Industries directory network. This page explains what those ratings measure, how they are calculated, where they apply across trade verticals, and what distinguishes a high-confidence rating from a provisional or suspended one. Understanding the rating framework helps directory users interpret listing quality signals accurately and helps contractors identify what compliance gaps may affect their standing.

Definition and scope

A trade authority rating is a composite credentialing score assigned to a listed contractor or firm based on verified compliance data across four primary domains: licensing and legal standing, insurance and bonding coverage, documented performance history, and ongoing regulatory adherence. The rating is not a consumer review aggregate — it reflects institutional compliance posture, not subjective satisfaction.

The scope of the rating system spans all trade verticals covered by the Authority Industries network, including construction, electrical, HVAC, plumbing, roofing, general contracting, and specialty subcontracting categories. For a full breakdown of how these verticals are defined and segmented, see Authority Industries Trade Categories Explained.

Ratings apply at the entity level — meaning the licensed business entity — not the individual technician. A firm with 12 licensed technicians carries one entity-level rating that reflects the firm's aggregate compliance status, though sub-credentials for individual license holders may be displayed as supporting data points.

How it works

The rating mechanism operates as a weighted composite score derived from structured data inputs. The four primary input domains are weighted as follows:

1. Licensing and legal standing — Verified active state license(s), no unresolved disciplinary actions, and no active license suspensions. This domain carries the highest single weight in the composite because an unlicensed contractor operating in a licensed trade exposes consumers to both safety and legal liability.
2. Insurance and bonding coverage — Confirmed general liability coverage at or above the applicable vertical minimum, plus active surety bonding where required by state law. See Authority Industries Insurance and Bonding Requirements for coverage thresholds by trade.
3. Performance documentation — Completed project records, warranty compliance history, and verified absence of substantiated consumer complaints filed with state contractor licensing boards or the Federal Trade Commission (FTC).
4. Regulatory adherence — Timely license renewals, continuing education completions where required, and compliance with OSHA standards applicable to the trade vertical (OSHA).

Each domain is scored on a 0–100 point scale. The composite rating is expressed as a letter tier — A, B, C, or Provisional — with A requiring a minimum composite of 85 points and B requiring a minimum of 70 points. Contractors scoring below 55 enter a Provisional status, which is disclosed on their listing and reviewed on a 90-day cycle.

The vetting methodology behind these scores is described in full at Authority Industries Vetting and Approval Process.

Common scenarios

Three patterns account for the majority of rating outcomes processed across the network:

Scenario 1 — Full A-Rating: A licensed general contractor operating in Texas holds an active Texas Residential and Commercial Contractor License, carries $1 million in general liability coverage, maintains an active $10,000 surety bond as required under Texas Occupations Code Chapter 1305 (Texas Legislature, Occupations Code), and shows no substantiated complaint history with the Texas Department of Licensing and Regulation (TDLR). That firm scores above 85 on all four domains and receives an A rating.

Scenario 2 — B-Rating with a performance gap: An HVAC firm in Ohio holds valid state HVAC contractor licensure and appropriate insurance but has one substantiated complaint under review with the Ohio Construction Industry Licensing Board. The complaint is unresolved, which suppresses the performance domain score below 70. The firm receives a B rating pending resolution.

Scenario 3 — Provisional status: A roofing subcontractor recently licensed in Florida has no complaint history and adequate bonding but has not yet accumulated sufficient verified project documentation to produce a performance domain score above 55. The Provisional rating applies until 6 months of documented project activity is on file.

For comparison: a B-rating differs from Provisional status not in severity but in cause. A B-rated firm has passed minimum thresholds in all four domains but carries documented gaps in at least one. A Provisional-rated firm is structurally incomplete — it lacks sufficient data to generate a reliable composite, regardless of whether existing data is positive or negative.

Decision boundaries

Rating thresholds are calibrated against the Authority Industries Contractor Performance Standards and reviewed annually against regulatory developments across the 50 states. The decision rules that govern rating transitions include:

If the deficiency is not resolved, the rating drops to the next lower tier.
- Upgrade pathways: A Provisional-rated firm advances to B or A once all four domain data sets are complete and scored. Upgrades are not granted retroactively — the scoring date reflects the date of verified data completion.
- Suspension and delisting: Ratings do not descend infinitely. A firm scoring below 40 on the composite, or found to be operating with a revoked license, is suspended from the directory pending investigation under the process described at Authority Industries Dispute Resolution and Accountability. Suspension is disclosed publicly on the listing page.
- Recertification cycle: All ratings are subject to the annual recertification cycle regardless of current tier. The renewal process is documented at Authority Industries Renewal and Recertification Cycle.

These boundaries ensure the rating system functions as a compliance signal, not a marketing designation.

References

• Federal Trade Commission (FTC)
• Occupational Safety and Health Administration (OSHA) — Contractor Safety Standards
• Texas Department of Licensing and Regulation (TDLR)
• Ohio Construction Industry Licensing Board
• Texas Occupations Code — Chapter 1305 (Texas Legislature)
• U.S. Small Business Administration — Contractor Licensing Overview